Coincheck Undergoes Class Action to Return Missing Crypto Assets

More investors joined the earlier lawsuit filed in Tokyo District Court Controversies company said earlier on that it will reimburse Yen worth of NEM without specifying a date of refund. However, some customers say the company should have refunded NEM instead of Yen or given Yen at a higher rate of NEM.

An additional 132 investors are now part of the class action suit against the Coincheck. This is according to Sankei, a Japanese media outlet.

The investors are pushing the startup to get their cryptocurrency back, after last month’s hack. The suit was under file in Tokyo District Court on February 27. The investors are seeking a total of $2.1 million in cryptocurrency.

Earlier on, investors filed a suit against the company seeing refunds amounting to $183,000. Thus, in damages with 5 percent interest on an annualized basis until they could receive their returns.

Controversies regard the amount to be reimbursed

Coincheck said last month that it lost a total of about $400 million worth of NEM coins. Later on, in January, the company said it would return $426 million in Yen but didn’t state when customers would receive the amount.

The startup calculated the refund rate of 88.549 yen per NEM based on NEM prices. However in the period between when they suspended new purchases and sales of NEM on the Coincheck platform. Later on when they posted the blog explanation. Customers said the company should return assets at a higher rate or reimburse NEM instead of Yen.

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.